Global Ethylene Oxide and Ethylene Glycol Market Trends and Forecast to 2030

The Ethylene Oxide and Ethylene Glycol Market is experiencing robust expansion, with market size projected to increase from (30 Billion) 2024 to (48.86 Billion) 2030, demonstrating a consistent year-over-year growth rate of 5.2%. Ethylene Oxide and Ethylene Glycol Market Size, Share, Competitive Landscape and Trend Analysis Report, by Types (Ethylene Oxide, Ethylene Glycol), by Applications (Automotive Coolants, Polyester Fibers, Surfactants, Brake Fluid, Antifreeze, PET Resins, Plastics) , by End Use (Cosmetic and Personal Care, Agriculture, Medical, Chemical, Food and Beverages, Automotive, Textile, Others) And Regions (North America(United States, Canada, Mexico), South America(Brazil, Argentina, Chile, Rest of South America), Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA(Middle East, Africa)) : Industry Forecast and Opportunity Analysis for 2024 - 2030

Ethylene oxide (EO) is a very reactive, colourless gas employed mostly as an intermediate in the manufacture of other valuable chemicals, the most notable among them being ethylene glycol. It is also used as a sterilant in hospitals, particularly for equipment and spices. Ethylene glycol (EG), which is a colourless and odourless liquid, is used mainly in the manufacture of polyester fibres and polyethylene terephthalate (PET) resins for plastic bottles. Antifreeze and coolant formulation applications are also other avenues. Today, ethylene oxide and ethylene glycol constitute a large and globally important market, driven by performance, demand for polyester fibers in the textile industry, PET resins in the packaging industry, and antifreeze in the automotive. The market dynamics, including raw material prices (mainly ethylene), production capacities, and end-use industry growth, greatly influence the situation.

Ethylene Oxide and Ethylene Glycol Report Highlights

Report Metrics	Details
Forecast period	2019-2030
Base Year Of Estimation	2024
Growth Rate	CAGR of 5.2%
Forecast Value (2030)	USD 48.86 Billion
By Product Type	Ethylene Oxide, Ethylene Glycol
Key Market Players	Dow Chemical INEOS Group Limited Huntsman Corporation BASF Sinopec Shell Group Formosa Plastics Group Reliance Industries Ltd. SABIC
By Region	North America(United States, Canada, Mexico) South America(Brazil, Argentina, Chile, Rest of South America) Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe) Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific) MEA(Middle East, Africa)

Ethylene Oxide and Ethylene Glycol Market Trends

Sustainable production practices are becoming very much in vogue for ethylene oxide and ethylene glycol. Consequently, manufacturers are focusing their energy on bio-based EO and EG derived from renewable resources like sugarcane and corn to lessen their environmental footprint and cater to the growing demand for greener products. Increasing environmental regulations and growing consumer preferences for sustainable material are key drivers of this trend. An additional budding trend is the growth in demand for high-performance polyester fibres. The textile industry is always on the lookout for innovative materials with extended properties, such as durability, comfort, and functionality, therefore promoting the demand for EG-based polyester fibres with advanced applications: clothing, home furnishing textiles, and industrial textiles.

Ethylene Oxide and Ethylene Glycol Market Leading Players

The key players profiled in the report are INEOS Group Limited, Shell Group, BASF, Dow Chemical, Formosa Plastics Group, Reliance Industries Ltd., Sinopec, Huntsman Corporation, SABIC

Growth Accelerators

Significant changes are currently being experienced by the ethylene oxide and ethylene glycol market due to several factors. First, one of the high-growth drivers is the increasing demand for antifreeze and coolants, especially in the automotive industry, where ethylene glycol plays a major role in cooling systems for engines. Besides, ethylene glycol has many applications in the textile industry in the production of polyester fibres, which are important for producing clothes and other fabric-based products. Now that the automotive and textile industries are going global, especially in emerging markets, their demand for these chemicals is massively increasing. The other key driver that will propel these markets is the growing usage of ethylene oxide and ethylene glycol in synthesising polyethylene terephthalate (PET) resins. PET finds its use mostly in packing forms such as beverage bottles and containers used in food packaging due to its strength and durability. The demand for packaged goods and beverages is on the rise, especially from developing regions, thus leading to increased use of PET and driving the market for both ethylene oxide and ethylene glycol.

Ethylene Oxide and Ethylene Glycol Market Segmentation analysis

The Global Ethylene Oxide and Ethylene Glycol is segmented by Type, Application, and Region.
By Type, the market is divided into Distributed Ethylene Oxide, Ethylene Glycol . The Application segment categorizes the market based on its usage such as Automotive Coolants, Polyester Fibers, Surfactants, Brake Fluid, Antifreeze, PET Resins, Plastics. Geographically, the market is assessed across key Regions like North America(United States, Canada, Mexico), South America(Brazil, Argentina, Chile, Rest of South America), Europe(Germany, France, Italy, United Kingdom, Benelux, Nordics, Rest of Europe), Asia Pacific(China, Japan, India, South Korea, Australia, Southeast Asia, Rest of Asia-Pacific), MEA(Middle East, Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.

Competitive Landscape

The market for ethylene oxide (EO) and ethylene glycol (EG) has a plethora of international giants along with a handful of local players. Some of the leading competitors include Dow Chemical, BASF, Shell, and Sinopec, which boast high production capacities and a vast global reach. They all compete against one another on production efficiency, technology advancements, and downstream integrative activities. The price and availability of raw materials, with ethylene being the primary constituent, are also significant influences within this market. The EO/EG market faces stiff competition, uniformly compelling companies in the sector to sharpen their processes, broaden their portfolio, and strengthen their market position. Causes like mergers or acquisitions and joint venture projects are often undertaken by companies as a means to increase their scale or tap potential markets or sectors of interest. The market for ethylene oxide (EO) and ethylene glycol (EG) has a plethora of international giants along with a handful of local players. Some of the leading competitors include Dow Chemical, BASF, Shell, and Sinopec, which boast high production capacities and a vast global reach. They all compete against one another on production efficiency, technology advancements, and downstream integrative activities. The price and availability of raw materials, with ethylene being the primary constituent, are also significant influences within this market. The EO/EG market faces stiff competition, uniformly compelling companies in the sector to sharpen their processes, broaden their portfolio, and strengthen their market position. Causes like mergers or acquisitions and joint venture projects are often undertaken by companies as a means to increase their scale or tap potential markets or sectors of interest.

Challenges In Ethylene Oxide and Ethylene Glycol Market

The ethylene oxide (EO) and ethylene glycol (EG) market face challenges affecting its growth and stability. One of the eminent concerns is the oversupply of ethylene glycol that resulted in a considerable downturn in the MEG prices. This excess supply has created uncertainties in the way producers sustain production rates and maintain viable profit margins. Furthermore, the unknown due to geopolitical factors has made matters a bit grimmer for the supply chain regarding raw material availability and pricing. All of these factors, along with price volatility and raw material cost fluctuations, have continuously posed challenges for the producers. Another prominent factor that has gained the industry's modicum of attention is the conventional methods employed for production and their respective environmental footprints. This new shift toward greener methods would nevertheless pose as many question marks to the industry as benefits.

Risks & Prospects in Ethylene Oxide and Ethylene Glycol Market

This increase in demand will be caused by an increase in polyester fiber demand in the textile and PET resin demands in the packaging industry. The emerging economies are reducing this gap because of their ever-increasing populations and growing disposable income. This gap will inevitably be filled by the ever-increasing population of Asia Pacific, creating a lot of opportunities for manufacturers to grow their production capacities to meet future demands from these end-use industries. Automotive growth in developing countries is continuous, and so too is the demand for antifreeze and coolant, with EG being at the very heart of the equation. This scenario provides opportunities for the industry players to think of developing EG-based coolant formulations with advanced performance and environmental friendliness characteristics.

Key Target Audience

, The market for ethylene oxide (EO) and ethylene glycol (EG) has a plethora of international giants along with a handful of local players. Some of the leading competitors include Dow Chemical, BASF, Shell, and Sinopec, which boast high production capacities and a vast global reach. They all compete against one another on production efficiency, technology advancements, and downstream integrative activities. The price and availability of raw materials, with ethylene being the primary constituent, are also significant influences within this market., The EO/EG market faces stiff competition, uniformly compelling companies in the sector to sharpen their processes, broaden their portfolio, and strengthen their market position. Causes like mergers or acquisitions and joint venture projects are often undertaken by companies as a means to increase their scale or tap potential markets or sectors of interest.

Merger and acquisition

Currently, the ethylene oxide and ethylene glycol market has seen a great consolidation in recent years as the major industry players have gone through strategic mergers and acquisitions to improve their respective positions and create larger production capacities. For example, Indorama Ventures Public Company Limited acquired Oxiteno in April 2022 - one of the leading producers of ethylene oxide and ethylene glycol derivatives - for USD 1.3 billion. Another similar event is the one in 2021 when INEOS acquired the ethylene oxide and derivatives business of LyondellBasell, including the site in Bayport, Texas. The purchase was valued at USD 700 million and included a 420,000-tonne per year ethylene oxide plant, a 375,000-tonne per year ethylene glycol plant, and a 165,000-tonne per year glycol ether plant. Through this acquisition, INEOS has increased its production capacities to strengthen its position in the North American market. The acquisition was aimed at strengthening Indorama's position in the Latin American market and expanding its portfolio of products. >

Analyst Comment

The ethylene oxide and ethylene glycol market are expected to increase from USD 39.7 billion in 2024 to USD 51.9 billion by 2029. The growth is mainly due to higher demand for ethylene glycol in the generation of varied products, such as polyethylene terephthalate (PET) resins, antifreeze, and textiles. Ethylene oxide is also mainly used generally for sterilisation operations of products in this sector. The automotive and healthcare industries are also noteworthy pushers to the market, as ethylene oxide is popular as an effective sterilising agent besides being an ingredient in many products. In addition, the increased industrial activities in emerging economies also push the growth of the market as the higher demands for these essential chemicals accompany urbanisation and industrialisation.